Some people hate Apple a lot, more than they hate Nazis or Smurfs. We focus on sharing thought provoking expertise that promotes an elevated conversation on brand strategy and brand management and fosters community among marketers. Apple is one of the most valuable and strongest brands in the world. As one can see from the above that branding has both advantages as well as disadvantages, however its advantages outweigh its disadvantages and that is the reason why companies go for branding and makeover if the company is in financial trouble or it wants to establish itself in the market. According to research, Apple’s customer service gets higher marks compared to other brands such as Dell, HP, and many more. Apple iPhone SE 2020 price in India is around Rs.42,999 and $599 in the USA. Is the brand losing it’s lusture? Late Apple chairman and CEO, Steve Jobs is widely perceived as unconventional leader who was able to rally various stakeholders of the company for his vision and at the same time “demanded excellence from his staff and was known for his blunt delivery of criticism” (McInerney, 2011).According to Harrison’s Model of Culture (1972) Apple organisational culture when Steve Jobs was in charge can be classified as a power cult… The recently launch iPod provides an example. According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. Consumers need choice and to be (or at least feel as if they are) in control. In this case, the following are the most notable strengths of Apple Inc.: 1. Apple pay was launched as a payment service for all iOS devices and it allows shoppers to pay for goods and services using their smartphones. This indicates growing confidence. As soon as products were no longer produced by local manufacturer the need for the brand image occurred. Following Steve Jobs is a tough act, particularly when his second run at Apple took the company to the top of the technology sector. Cool kids, Dancing Dads and Silver Surfers all lean against counters and poke product interfaces with varying levels of success. These strengths are internal factors specific to the conditions within the business organization. For an extra $40 you might as well just buy brand new. Tim Cook has been able to run the company successfully in his tenure as CEO but there is a difference between running a company that has already established itself as a dominant leader in the market as opposed to running a company that continues to be one of the most innovative firms in the world. Designing a brand involves significant research, naming development, graphic design and brand identity integration, which aren't cheap. Who would have thought that? The question is whether CEO Tim Cook can provide the leadership Apple needs to stay on top of the device game. An example would be Apple and Samsung charging a higher price of their smartphones than Sony and Huawei because customers have that brand image that Apple and Samsung have the … Apple Inc.’s organizational culture empowers the business to continue succeeding in the computer software and hardware, cloud services, consumer electronics, and digital content distribution services industries. But Wayne has left Apple before the incorporation, the real twist in its growth and development was with the entry of Mike Markkula who was the former marketing manager at … Apple utilizes not just line extension or brand as a strategy- it utilizes both. Protection for smart watches is very weak, and it’s incredibly easy to steal valuable data from them, so you should definitely check Apple Watch before buying. When you think about companies who are so powerful that they may as well be considered religions (like Apple, Nike, Coke, Amazon), consider that they all combine many … 4. Apple’s iPhone 5 is also struggling to get traction in China’s mobile market through up-channel relationships with key players like China Mobile. At the core product level there have been problems. Some refurbished products are truly awesome deals like the aforementioned 2013 iPad Air for only $479. Under the Apple brand, a customer can find IPhone, IPad, Mac Book, Mac Air, Apple watch, etc. The factor of Brand Character is such that a consumer can relate to it creating an emotional connection with its values, fundamentals, and the unique selling points. As brand names can be legally protected through trademark, it helps organisations fight competition and counterfeiting. Walk into an Apple store. If you were a brand and business that was counting on the TPP, then the words of Donald Trump represent a high political risk. Advertising has to be done consistently as doing it occasionally does not result in producing the desired result of creating a brand image in the minds of the customers. But they refused to open their systems and maintained the closed, proprietary approach to software development – which is why they remained a niche player. They’re now refocusing on their core enterprise market. What are the competitive advantages and disadvantages of Apple's marketing assets comparing with its competitors, like Sony and Samsung? Business owners may feel pressured to increase the price of their products to compensate for the increased expense, which could cause customers to switch products. Other App Markets are Growing? Many of Apple’s loyal customers see the company’s tightly controlled software and services as a... Pace of Innovation. In the year 2015, Forbes magazine has ranked Apple as the most valuable brand of all time and the worth was estimated 145 billion dollars. Umbrella Branding Examples. Apple Inc is on the top ten of 100 most precious global brands with an approximately value of $63,113m. Brand Character can be defined as the set of human attributes and characteristics associated with the brand giving it a unique personality and recognition in the market and in the minds of the consumers. If you find our thought pieces on brand strategy and brand management insightful and would like a deeper understanding for yourself, your marketing teams or leadership teams we can develop a customized learning and development engagement for you. This inability to experiment makes it harder for Apple to innovate as rapidly as Google does in the services space or as fast as Samsung in the hardware space. Design & Technology – The best part of Apple, and the reason for its fantastic brand equity is its design as well as the technology it uses. So a brand may have 10 product lines, but the trust on that brand, leverages the attributes of all the 10 product lines. It’s also involved with engineering (or more accurately procuring engineered components that are assembled by other firms). They leave angry comments on Apple blogs. CEO Steve Jobs. The biggest revenue generation comes from hardware, but the closed nature of Apple’s ecosystem forces the company to be in all the other businesses as well. The one-year limited warranty is the same warranty you get with a brand new product at full price. Are we seeing the first signs of weakness in a truly incredible brand? A global organization is an international alliance that involves many different countries. Maybe. Advantages And Disadvantages Of Apple Computer Customer Service; Advantage Of Apple Computer:. When a consumer is attracted to multiple brands under the same company umbrella, it becomes possible to build multiple levels of loyalty with a single consumer. Apple is still determined to build and craft better, more proficient technology devices. In the early 80’s Apple was, by far, the premier and most loved PC brand. Apple iPhone SE 2020 high-end smartphone launched into the market. Technology, Media, and Telecom (TMT) Sector. Weaknesses: ... A new version of Apple TV could take advantage of today's more highly developed Web. 795 Words 4 Pages. Losing focus? Examples of umbrella branding include several and a concrete example is that of Apple Inc. The last weakness isn’t unique to Apple, but it has emerged as a big one. Recent lawsuits have opened consumers’ eyes to the fact that a lot of the iPhone is actually made by other brands such as Samsung (memory chips, flat screen displays etc). So Apple has to depend on its leadership and employees being so far ahead of the curve that the slower release schedule still results in Apple leading the market. For instance, Apple’s apple is a trademarked item. While the products are very beautiful and sleek, prices for apple products are way too … Apple Inc. (AAPL) is among one of the largest tech companies in the world, as measured by market cap, and continues to dominate in the categories that it invented or popularized, such as the smartphone and the tablet. Example of Umbrella branding – In order to make it more clear, let’s take a concrete example such as Apple. Check out some advantages and disadvantages of Apple computers. Brand symbols makeover is a creation of a new image and new attributes for the brand … Jobs was behind the core products that continue to drive revenue at Apple, whereas the major post-Jobs release, the Apple Watch, has yet to impress. Even the most die hard Apple fans have to confess the price point for the new MacBook Pro with retina display is well, eye watering. From a management perspective, this muddies the water on what Apple should focus on. It stands out from the crowd regarding the … Thus, the trailer has been already launched of the new iPhone 11. Apple needs a piece of the Chinese mobile market pie but key channels are not playing ball. Apple is still determined to build and craft better, more proficient technology devices. This is more noticeable when comparing the price point of Mac computers with their Windows counterpart. Stability. The founders of Apple Inc (founded as Apple Computer Inc) are Steven Paul Jobs, Stephen Gary Wozniak, and Ronald Gerald Wayne. (Photo: Public Domain) Apple Inc.’s organizational culture is a key factor in the continuing success of the business. Citing Adobe research, it said application downloads had fallen 38% in the US since 2014 and were down 5% in Europe over the same period.TechCrunch in 2018, citing research from Flurry, said that during 2017 the amount of time spent on mobile applications only grew 6% compared to growth of 11% in 2016. Advantage And Disadvantages Of Apple Company. The brand value of Apple Inc. is significant. New products are being launched at an unrelenting rate. Tim Cook has very big shoes to step into. Apple was recently ordered to remove a banner from its site that hid the court ordered apology to Samsung relating to the recent IP case. © 2006 �� 2020 The Blake Project. List of the Disadvantages of Individual Branding 1. The argument for control starts to unravel. Apple has also been in the press with regards to questionable working practices. A global organization is an international alliance that involves many different countries. We have already provided you the best list ever of Android advantages and disadvantages and here we are with iOS. Smartphones are handheld devices that enable people to make phone calls, send text messages, and access the Internet. Advantage And Disadvantages Of Apple Company. At the same time, other tech manufacturers have caught on and are themselves rolling out upgrades and new models on a regular basis as well. Apple Sources of Competitive Advantage Apple, the leading technology brand and the maker of iPhone and Mac was founded in1976 by Steve Jobs and Steve Wozniak. Will consumers like the fact they’ve been seduced by a mirage and are paying a premium for that? This aspect of the SWOT analysis framework identifies the strengths that enable the company to overcome weaknesses, take advantage of opportunities, and withstand threats in its business environment. They live in a world of pain. Definitely. The products of Apple are relatively expensive when compared with similar products from competitors. But competition with local products which were already familiar to consumers was impossible without differentiation and strong appealing image. Customers associate original/core brand to new product, hence they also have quality associations. Under the steep competition of streaming music services, Apple Music has survived and hit its stride. There is a scope of customization before purchase, but later on, there is no room for memory, processor, and storage upgrades. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The branding strategy of Apple is what makes the Company become successful. Apple’s brand is the world’s most valuable and recognizable brand. Disadvantages. The high product expectation for each new version or model that Apple has created may ultimately prove to be the company’s biggest weakness. But, before you do so, read out the advantages and disadvantages of the iPhone 11. Will an Apply Pay... 3. Price:. That’s not to say that iterations like the iPhone X or iPhone 11 Pro don’t require leadership, but it may require a different kind of leadership to keep Apple’s reputation for visionary products. 795 Words 4 Pages. Disadvantages of branding. Product price points? These processors have many advantages, Apple has made this leap with a lot of knowledge, but there are also some disadvantages. There is always a political risk involved with international trade. Steve Jobs is gone, and Apple needs to keep finding its way without him, something that the company has historically struggled with. It’s 1984 all over again…which is why I never bought into the Apple mania to begin with…. Acceptance and Pop-up Texts. Consider these points: Leadership? But with the iPhone/iPad Apple is again pitching a proprietary closed development system against the completely open world of Android – and it will lose, big time, just as it had lost out to the inferior IBM-compatible/DOS world in the 80’s. The same is also true for MacBook Pro and MacBook air. By that, we can understand that it has secured a distinctive advantage over other competitors in the industry. Makeover. Branding Strategy Insider helps marketing oriented leaders and professionals build strong brands. Steve Jobs was a visionary, and it was his vision that took Apple to where it is today. That creates the potential for long-term repetitive sales, which ultimately leads to a healthy, growing organization. Disadvantages: Extending the brand name too far may lead to a loss of reliability, especially if the brand extension happens in an unrelated market. Weaknesses: ... A new version of Apple TV could take advantage of today's more highly developed Web. Quality problems with negative effects on sales and Apple brand image If a brand can’t deliver core functional benefits i.e. Clever. In light of recent events we wonder if we are starting to see weakness in the Apple Brand. As of the last quarter of 2019, Android users had a mammoth choice of over 2.5 million apps while those using the Apple iOS platform had a still considerable 1.84 million apps to choose from. According to Interbrand [4] and Forbes [5], the Apple brand is worth US$234.241 billion and US$205.5 billion, respectively. Disadvantages of macOS: Why you should not buy a Mac computer. In 2018, the brand touched a market valuation of 1 Trillion dollars. Apple iPhone SE 2020 price in India is around Rs.42,999 and $599 in the USA. Apple stole an early lead with regards to apps. The technology, media, and telecom (TMT) sector is an industry grouping that includes the majority of companies focused on new technologies. Disadvantages of branding. Apple’s brand is the world’s most valuable and recognizable brand. Overall, however, this puts an additional burden on Apple’s development cycle as software, security, and many other details become an in-house responsibility. At the core product level there have been problems. An iconic brand that delivers revolutionary, beautifully designed and incredibly profitable products. Apple’s getting a little greedy? Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. Is Apple becoming a control freak? We think Samsung is being very canny here. Can he really match up to Steve Jobs with regards to vision, brand strategy and product innovation? Is Apple A Mirage? 2. Effectiv… Is this turning people off? Brand value is closely related to its recognition, meaning that Apple is also one of the world’s most recognizable brands. Fewer viruses and other security issues: One of the advantages of macOS is that it is considerably … Apple’s first processor for its computers is the M1, which is already available in three models: MacBook Air, MacBook Pro and Mac mini. Having a strong brand name helps companies create barriers for new competitors to enter the market. One major disadvantage of branding is the expense. There’s a plausible alternative and people are taking it. Although the vision of your company is clear at the beginning of the communication process, it can become muddled by the time it passes through 1-2 groups of consumers. Apple has developed an amazing brand that is associated with products that work perfectly and that are designed in such a way as to feel both advanced and natural at the same time. Potential Downsides of Opting for Refurbished While most companies tend to offer extended warranties with their refurbished products, Apple does not. Apple laptops have limited upgrade options. Mega cap is a designation for the largest companies in the entire investment universe as measured by market capitalization. A brand … A killer application, or "killer app" is a software program, feature, or user-interface perceived as innovative enough to influence trends and sales. Overpriced It was the prototypical brand. Customer Service. Mac computers are considerably expensive: The fact remains that Apple sells expensive computers whether it is the new MacBook Pro with Retina or a Mac Mini. On top of this, Apple is in the business of running licensing agreements for its content sales, including iBooks, iTunes, Apple Music, and the App Store. Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads). Powered By WordPress, Aligning Employer And Corporate Brand Strategy, Reducing Internal Obstacles To Business Growth, Six Keys To Activating The Jobs-To-Be-Done Theory, struggling to get traction in China’s mobile market, There Are No Structural Barriers To Competition, Building Trust Capital For Business And Brands, How Assumptions Destroyed The Citrus Hill Brand, How Brands Can Start Or Serve Social Movements. High brand recognition In Apple case study that to review the market broadly, Apple has invested $4.5 billion in 2013 for Research and Development as compared to $2.4 billion in 2011. Questionable brand personality? Apple was the first to introduce some of the most innovative products that have changed the world (iPhones, iPads). Apple’s Key Weaknesses The Closed Ecosystem. There are also many business-based apps covering areas such as productivity, planning and communication. Brand extension is the use of an established name for a new product or new product category. The IP case is exposing Apple in this respect. Apple’s new M1 processor. iOS is inferior to Android…and the hardware Apple is manufacturing is inferior at the very least to Samsung’s products. The brand value of Apple Inc. is significant. So, how can Apple be so late in launching its brand new Apple iPhone? A global organization produces and sells its products across the globe or to the different markets in different countries. High brand value grants substantial advantages to the multinational technology company in terms of leveraging the brand to add new products and services into the portfolio. Stronger Competitors? Photos: Advantages and Disadvantages of Apple Watch For this reason alone, it is worth considering that Apple products may not just be a useless promoted brand. Every company has its opponents, but Apple really gets people worked up. The brand value in 2015 was estimated to be 118.9 Billion dollars!! People who work in brand admire Apple for very good reasons. Apple doesn’t provide this. iPods, a consumer product without a developer base, actual nor potential, succeeded and will probably continue to thrive although personally I have not adopted the iPod either as it is also a closed system concept – iPod+iTunes as a bundle. A product release bug may often impact the running of the payment service or some other issue with... 2. These high expectations mean that Apple can’t throw experimental products or services at the market without hurting its brand. Most of us had made our mood to sell our old iPhone and let us purchase the latest version of the iPhone that is iPhone 11. High profit margins 3. Thus, companies have to know which product categories will work and where they can actually use the brand name. It’s got to the stage that Apple products are being sold on Groupon. Brand Of Choice . Many of Apple’s loyal customers see the company’s tightly controlled software and services as a major strength of the company, as it allows Apple to control all aspects of the devices it produces. Expensive. Expensive. Image source: Apple. The five-year-old Apple Music already boasts more than 60 million paying subscribers, which is a nightmare for Spotify, Pandora and other streaming music services. Contributed to Branding Strategy Insider by: Dr. Darren Coleman, Managing Consultant, Wavelength Marketing®, The Blake Project Can Help: The Brand Positioning Workshop, Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education, FREE Publications And Resources For Marketers, Extremely simple…Apple is again failing to open up. The downside this time around? Customer Service; Advantage Of Apple Computer: A computer can go bad, no matter of its brand, and who makes it. People like Jobs are rare, so expecting Cook to be like Jobs will never come to fruition. The brand Apple is the number 1 valued brand amongst all the companies in the world as of 2016. In apple computers/laptops the processor and memory are integrated on a single circuit board. Insidious? Although the smart watch has already proven successful in some areas, iWatch still has shortcomings: 1. Contrast this to Samsung. Questionable Product Quality? 1. Creating a brand identity is expensive. According to researchers, Apple’s customer service gets high marks when compared to other brands such as Dell, HP, and many more. Apple Pay looks fantastic now but as millions of shoppers start using it will it scale? Brand name. Apple is one of the leading branding companies in the world. Chances are if you’re considering a refurbished Apple product, it’s to save some money. More importantly, this advertising strategy serves a deep psychological and emotional purpose – to get Apple consumers to question their decision making motives and chip away at emotions concerning conspicuous consumption. The biggest disadvantage of branding is that it involves huge cost because brands are not created overnight and companies have to spend huge sums on advertising and publicity. All rights reserved. Others, like $40 off a Series 1 Apple Watch, aren’t so much. As brand names can be legally protected through trademark, it helps organisations fight competition and counterfeiting. 1. A global organization produces and sells its products across the globe or to the different markets in different countries. Cons of Apple Pay 1. By plugging into Android and the rest of Google Inc.'s (GOOG) ecosystem, Samsung can focus on iterating the hardware and innovating on the design of its devices rather than having to police third-party apps or roll out operating system updates. Indeed, well, how do you install a password system on such a small display, it’s that, do you need a pencil to enter? Its logic for developing a closed environment i.e. Check out some advantages and disadvantages of apple computer. Under this brand name, customers may find the iPad, iPhone, Apple Watch, Mac Air, Mac Book, etc. Talk to anyone that tries to use a non Apple product with an Apple product. The founders of Apple Inc (founded as Apple Computer Inc) are Steven Paul Jobs, Stephen Gary Wozniak, and Ronald Gerald Wayne. Leadership. Apple with the aim of targeting direct sales, it has located its branches in densely populated locations that can contribute to earn more revenues and to ensure more results that are terrific. A computer can go bad, no matter its brand or who makes it. For instance, Apple’s apple is a trademarked item. Brand identity awareness as we understand it now appeared in the 19th century with the introduction of packaged goods. What are the competitive advantages and disadvantages of Apple's marketing assets comparing with its competitors, like Sony and Samsung? But Wayne has left Apple before the incorporation, the real twist in its growth and development was with the entry of Mike Markkula who was the former marketing manager at … Notify me of followup comments via e-mail. Yes, Apple products are aesthetic delights and user interface masterpieces. Android is now catching up with a more flexible and open developers’ environment. Will consumers identify with this type of brand? We have already provided you the best list ever of Android advantages and disadvantages and here we are with iOS. The infamous “death grip” and mapping issues spring to mind. Is the brand struggling to retain its status as the Apple of people’s eye? However, time will tell if he can ensure Apple remains as one of the most cutting edge and innovative companies on the planet. Controlled software and services as a... 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